Apple out with earnings.  Stock up about 3 percent in after hours.

Revenues

We note:  1) the 17 percent overall revenue growth, still impressive given the size of the company;  2) looks like no blowback yet on trade with China, i.e., boycott of Apple products. Watch this space; 3) services growth comes in over 30 percent, and 4) all iPhone revenue growth all in the price increase, unit sales continue to flat line.

Upshot:  The company is trying hard, and to some extent succeeding, to reinvent itself away from just an iPhone company.   Nevertheless,  iPhones still make up almost 60 percent of total revenues.

Stock

Where is stock going?

We don’t know but the glory growth days are over unless they can kickstart innovation.  We are basically neutral on stock but don’t like the market in August.  If big tech moves lower in August probably the best FAANG performer, however.